Estimating the Return to Investments in Education: How Useful Is the Standard Mincer Equation?

Investigates the usefulness of the schooling coefficient, in equations developed by the human capital theorist Jacob Mincer, in estimating the internal rate of return to education in Sweden. Examines several assumptions underlying the coefficient, for example, that schooling precedes work. Finds that in some cases inference from the estimated schooling coefficient is misleading. (Contains 18 references.) (PKP)